High Gross MarginsVery high gross margins (≈87%–92%) reflect a low-cost delivery model for instruction and/or premium pricing power in niche cultural education. Durable margin advantage supports operating profitability even with top-line volatility and cushions earnings during slower enrolment periods.

Improved Free Cash FlowFree cash flow turned positive and increased in 2024–2025, with FCF closely tracking net income (~0.95–0.99). This improvement signals stronger cash conversion and gives the company durable capacity to service debt, fund operations, and maintain shareholder returns versus earlier cash drawdowns.

Niche, Recurring Education ModelThe company operates a specialized kimono-dressing education business with tuition-based revenues. That niche, culturally anchored service tends to generate repeat students and steady lesson fees, creating resilient, predictable cash inflows and a defensible market position against generalist competitors.

Bears Say

Choppy Revenue GrowthTop-line inconsistency — multiple down years and a 2025 decline — limits scale benefits and makes forecasting and investment planning harder. Persistent revenue volatility undermines the durability of margins and constrains the firm’s ability to steadily expand service offerings or geographic reach.

Elevated LeverageLeverage remains elevated despite improvement from earlier peaks, leaving financial flexibility constrained. High debt levels limit the company’s ability to invest, absorb shocks, or accelerate growth initiatives without prioritizing deleveraging or generating sustained higher cash flow.

Softening Operating ProfitabilityOperating and net margins declined from 2024 to 2025, indicating mounting cost pressure or weaker pricing leverage. If margin compression persists, it will reduce internal funding for growth and debt reduction, making long-term financial resilience more dependent on top-line recovery.

2499 FAQ

What was Nihonwasou Holdings, Inc.’s price range in the past 12 months?

Nihonwasou Holdings, Inc. lowest stock price was ¥290.00 and its highest was ¥421.00 in the past 12 months.

What is Nihonwasou Holdings, Inc.’s market cap?

Nihonwasou Holdings, Inc.’s market cap is ¥3.24B.

When is Nihonwasou Holdings, Inc.’s upcoming earnings report date?

Nihonwasou Holdings, Inc.’s upcoming earnings report date is May 20, 2026 which is in 90 days.

How were Nihonwasou Holdings, Inc.’s earnings last quarter?

Nihonwasou Holdings, Inc. released its earnings results on Feb 13, 2026. The company reported ¥14.42 earnings per share for the quarter, beating the consensus estimate of N/A by ¥14.42.

Is Nihonwasou Holdings, Inc. overvalued?

According to Wall Street analysts Nihonwasou Holdings, Inc.’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Nihonwasou Holdings, Inc. pay dividends?

Nihonwasou Holdings, Inc. pays a Notavailable dividend of ¥7 which represents an annual dividend yield of 3.86%. See more information on Nihonwasou Holdings, Inc. dividends here

What is Nihonwasou Holdings, Inc.’s EPS estimate?

Nihonwasou Holdings, Inc.’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Nihonwasou Holdings, Inc. have?

Nihonwasou Holdings, Inc. has 9,134,000 shares outstanding.

What happened to Nihonwasou Holdings, Inc.’s price movement after its last earnings report?

Nihonwasou Holdings, Inc. reported an EPS of ¥14.42 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went down -0.276%.

Which hedge fund is a major shareholder of Nihonwasou Holdings, Inc.?

Currently, no hedge funds are holding shares in JP:2499

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Nihonwasou Holdings, Inc.

Nihonwasou Holdings, Inc. engages in the management of Nihonwasou, Ito no Takumi Center, Nihonwasou Gijutsuin, Kimono Refresh Center, etc. It also provides educational guidance for kimono and sewing; brokerage of sales contracts for japanese clothes and accessories; tailoring and sewing of kimonos; and Kimono maintenance and sales promotion agency services. In addition, the company researches, develops, and sells kimono accessories. The company was founded in 1986 and is headquartered in Tokyo, Japan.